The investment group, which includes Greenwich,
Connecticut-based ESL Partners LP, holds 34.9 million Gap shares
with a current market value of almost $751 million, according to
a Schedule 13G filed today with the U.S. Securities and Exchange
Commission.

Gap reported that its same-store sales rose 1 percent in
January, compared with the 3 percent drop projected from
analysts’ estimates compiled by Retail Metrics Inc. The San
Francisco-based company’s shares have increased almost 10
percent, including dividends, in the past year.

ESL Partners held about 2.84 million Gap shares, or less
than 1 percent of shares outstanding, as of Dec. 31, according
to the hedge fund’s most recent Form 13F, a filing money
managers use to disclose their holdings in U.S.-traded stocks
and options at the end of each quarter. The group’s overall
stake reached the 5 percent reporting threshold on Feb. 3,
according to today’s filing.

According to the Schedule 13G, ESL Partners holds 20.46
million Gap shares and an affiliate owns 6.61 million shares. In
addition, Lampert has 7.86 million Gap shares under his own
name, the filing said.